Guilló, M.D.
Perspectives on Economic Growth – Chapter 4, Nova Science Publishers, 2006


Abstract: The objective of this study is to provide a theoretical framework to jointly analyze the role of natural resources and intangible capital in the process of economic development, addressing a simple mechanism that can explain why natural resource abundance may lower income and welfare. The model extends the development theory of relative incomes of Parente and Prescott to include intermediate goods production which require the use of a natural input. The model relative income predictions are consistent with the economic development observations of some Latin American countries